Amends existing law to revise a provision regarding distribution of revenue.

LEGISLATURE OF THE STATE OF IDAHO
Sixty-eighth Legislature Second Regular Session - 2026
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 793
BY WAYS AND MEANS COMMITTEE
AN ACT	1
RELATING TO BEER; AMENDING SECTION 23-940, IDAHO CODE, TO PROVIDE FOR COL-	2
LECTIONS FROM THE BEER EXCISE TAX; AMENDING SECTION 23-1008, IDAHO	3
CODE, TO REVISE A PROVISION REGARDING DISTRIBUTION OF REVENUE AND TO	4
REMOVE OBSOLETE LANGUAGE; AND DECLARING AN EMERGENCY AND PROVIDING AN	5
EFFECTIVE DATE.	6
Be It Enacted by the Legislature of the State of Idaho:	7
SECTION 1. That Section 23-940, Idaho Code, be, and the same is hereby	8
amended to read as follows:	9
23-940. ALCOHOL BEVERAGE CONTROL FUND. (1) There is hereby created in	10
the state treasury the alcohol beverage control fund. All moneys from li-	11
cense and transfer fees that are collected by the director pursuant to the	12
provisions of this chapter, as well as any collections from the beer excise	13
tax as provided in section 23-1008, Idaho Code, shall be paid over to the	14
state treasurer for deposit in the alcohol beverage control fund. Expendi-	15
tures of moneys in the fund shall be subject to legislative appropriation for	16
the use of the Idaho state police alcohol beverage control bureau in carrying	17
out the provisions of title 23, Idaho Code, and the rules promulgated by the	18
director thereunder. At the beginning of each fiscal year, those moneys in	19
the alcohol beverage control fund that exceed two hundred percent (200%) of	20
that fiscal year appropriation, as certified by the state treasurer, shall	21
be transferred to the general fund.	22
(2) All other moneys collected by the director pursuant to the provi-	23
sions of this chapter shall be paid over to the state treasurer for deposit in	24
the general fund.	25
SECTION 2. That Section 23-1008, Idaho Code, be, and the same is hereby	26
amended to read as follows:	27
23-1008. TAX -- DISTRIBUTION -- RULES -- REPORTS. (1) A tax of four	28
dollars and sixty-five cents ($4.65) per barrel of thirty-one (31) gallons,	29
and a like rate for any other quantity or fraction thereof, is hereby levied	30
and imposed on each and every barrel of beer containing not more than five	31
percent (5%) of alcohol by volume sold for use within the state of Idaho.	32
A tax of thirteen dollars and ninety-five cents ($13.95) per barrel of	33
thirty-one (31) gallons, and a like rate for any other quantity or fraction	34
thereof, is hereby levied and imposed on each and every barrel of beer con-	35
taining more than five percent (5%) of alcohol by volume.	36
Any wholesaler who shall sell beer, upon which the tax herein imposed	37
has not been paid, and any person who shall purchase, receive, transport,	38
store or sell any beer upon which the tax herein imposed has not been paid	39
shall be guilty of a misdemeanor, and any beer so purchased, received, trans-	40

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ported, stored or possessed or sold shall be subject to seizure by the com-	1
mission, any inspector or investigator of the commission, or by any sheriff,	2
constable or other police officer, and the same may be removed and kept for	3
evidence. Upon conviction of any person for violation of the provisions of	4
this section, the said beer, and all barrels, kegs, cases, cartons and cans	5
containing the same, shall be forfeited to the state of Idaho, and, in addi-	6
tion, the person so convicted shall be subject to the other penalties in this	7
chapter prescribed.	8
Beer and all barrels, kegs, cases, cartons or cans so forfeited to	9
the state of Idaho shall be sold by the commission at public auction to any	10
brewer, wholesaler, or retailer licensed under the provisions of this chap-	11
ter making the highest bid. Such sale shall be held at such place and time as	12
may be designated by the commission after reasonable notice thereof given	13
in such manner and for such time as the commission may by rule prescribe.	14
From the purchase price received upon such sale, the commission shall first	15
deduct an amount sufficient to pay the tax due on such beer and to pay all	16
costs incurred in connection with such sale. The commission shall deposit	17
the balance remaining with the state treasurer, who shall place the same in	18
the general fund of the state of Idaho, and it shall become a part thereof.	19
(2) The revenues received from the taxes, interest, penalties, or defi-	20
ciency payments imposed by this section shall be distributed as follows:	21
(a) An amount of money shall be distributed to the state refund account	22
sufficient to pay current refund claims. All refunds authorized by law	23
to be paid by the state tax commission shall be paid through the state	24
refund account and those moneys are continuously appropriated.	25
(b) For revenue deriving from beer containing not more than five per-	26
cent (5%) of alcohol by volume, the balance remaining after distribut-	27
ing the amount in paragraph (a) of this subsection shall be distributed	28
as follows:	29
(i) Twenty percent (20%) shall be distributed to the substance	30
abuse treatment fund, which is created in section 23-408, Idaho	31
Code;	32
(ii) Thirty-three percent (33%) shall be distributed to the	33
permanent building fund Idaho state police, of which no less than	34
sixty percent (60%) shall be dedicated to the Idaho law enforce-	35
ment fund for use in the project choice program, as established in	36
section 49-454, Idaho Code, and no more than forty percent (40%) to	37
the alcohol beverage control fund; and	38
(iii) The remainder shall be distributed to the general fund.	39
(c) For revenue deriving from beer containing more than five percent	40
(5%) of alcohol by volume, the balance remaining after distributing the	41
amount in paragraph (a) of this subsection shall be distributed as fol-	42
lows:	43
(i) Twelve percent (12%) shall be distributed to the substance	44
abuse treatment fund created in section 23-408, Idaho Code;	45
(ii) In fiscal year 2022 only, one and one-half percent (1.5%)	46
shall be distributed to the Idaho hop grower's commission fund	47
created in section 22-3112, Idaho Code, and three and one-half	48
percent (3.5%) shall be distributed to the Idaho grape growers and	49
wine producers account created in section 54-3607, Idaho Code.	50

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In fiscal year 2023 only, three and one-half percent (3.5%) shall	1
be distributed to the Idaho hop grower's commission fund, and	2
one and one-half percent (1.5%) shall be distributed to the Idaho	3
grape growers and wine producers account. In fiscal year 2024 and	4
each fiscal year thereafter, five Five percent (5%) shall be dis-	5
tributed to the Idaho hop grower's commission fund; and	6
(iii) The remainder shall be distributed to the general fund.	7
(3) The commission is empowered to prescribe rules:	8
(a) For reports by carriers for hire and also all other carriers owned	9
and/or employed, directly or indirectly, by out-of-state brewers,	10
dealers or other persons, of all deliveries of beer in and into the state	11
of Idaho, stating especially the origin and destination of the beer, the	12
quantity thereof, and also the names and addresses, respectively, of	13
the consignors and consignees.	14
(b) For reports by out-of-state brewers and manufacturers of beer, of	15
all shipments by them of beer into the state of Idaho, stating espe-	16
cially the matters mentioned in paragraph (a) of this subsection.	17
SECTION 3. An emergency existing therefor, which emergency is hereby	18
declared to exist, this act shall be in full force and effect on and after	19
July 1, 2026.	20

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